Dicker Data Limited (ASX:DDR) operated its Dividend Reinvestment Plan (DRP) for its latest 11.5 cent fully franked dividend, with new shares offered at a 1% discount. The technology distributor paid the dividend following a 54.1% increase in half-year net profit after tax and an update to its FY26 guidance.

Latest developments

Dicker Data reported its results for 1H26. Gross Revenue rose 14.2% to $2.10 billion, Gross Profit increased 23.0% to $205.6 million and profit before tax rose 50.1% to $86.4 million. Net profit after tax increased 54.1% to $60.7 million, and Basic Earnings Per Share rose to 33.45 cents from 21.79 cents.

The company pointed to technology refresh cycles, investment in artificial intelligence infrastructure and sustained software Demand as drivers. It updated its FY26 guidance to gross revenue of $4.3 billion to $4.4 billion, representing 11% to 14% growth, and profit before tax of $162 million to $165 million. The guidance is subject to trading conditions over the remainder of the year.

Key numbers

Dicker Data paid quarterly fully franked dividends of 11 cents per share through 2025. The FY25 final dividend and the first and second FY26 interim dividends were each 11.5 cents per share, fully franked.

Franking credits are calculated at a 30% company tax rate, and their value depends on each investor's tax position. The latest dividend, a second FY26 interim of 11.5 cents for the quarter ending 30 June, was paid in the September quarter.

About the company

Dicker Data describes itself as an Australian-owned and operated distributor of technology hardware, software and cloud solutions, selling to resellers and partners that serve corporate and commercial customers in Australia and New Zealand. Fiona Brown is executive chair and managing director. As a distributor, it sits between global technology vendors and the resellers, managed service providers and integrators that sell to end users, so its earnings depend on sales volumes and the Margin it earns on each transaction.

The company runs a December financial year and pays dividends quarterly, with interim dividends paid in instalments through the year and a final dividend paid after full-year results.

How the DRP works

Dicker Data's DRP applied in full for the latest dividend. According to its dividend notices lodged with the ASX, DRP shares are priced at the arithmetic average of the daily volume-weighted average Market Price over the 10 Business days up to the record date, less a 1% discount. The company confirmed the DRP price in an updated dividend notice, and elections closed shortly after the record date.

DRP shares are newly issued, and the plan was not underwritten. Fractional entitlements are rounded down, and holders who do not elect receive cash. Dicker Data applied for Quotation of the new shares on the payment date. The DRP discount is set in each dividend notice, and holders can refer to the DRP rules and the relevant dividend notice for the terms that apply.

Why it matters for income investors

Dicker Data's quarterly payments provide regular fully franked dividends, and the per-share amount has increased from 11 cents to 11.5 cents. Franking credits can be relevant for shareholders able to use them, and the benefit varies with each shareholder's tax circumstances.

The DRP allows participating shareholders to receive new shares instead of cash, without brokerage, at a 1% discount to the average market price over the pricing period. Shares issued under the DRP rank equally with existing shares, including for any future dividends the board may determine.

What comes next

Key items to follow include Dicker Data's performance against its updated FY26 guidance, the next quarterly dividend announcement, and whether demand from technology refresh cycles and AI infrastructure continues. Full-year results for FY26 would ordinarily be released after the end of the financial year, followed by the final dividend on the company's past timetable.

Any future dividend amount, franking level or DRP discount will be set by the board and disclosed in a dividend notice.

Risks and context

Past dividends do not indicate future payments. Dividends of 23 cents per share were paid in 1H26, comprising the FY25 final dividend and the first FY26 interim, compared with 1H26 basic EPS of 33.45 cents, and payouts depend on continued earnings and cash flow. Distribution margins are thin, with guidance implying a profit before tax margin of about 3.8%, so small changes in costs or pricing can have a large effect on profit.

The business depends on vendor relationships, Working Capital funding and IT spending cycles. Because DRP shares are newly issued, non-participants are diluted slightly. Reinvested dividends are still assessable income, and each DRP parcel sets a new cost base for Capital Gains Tax purposes, so record-keeping matters.

Conclusion

Dicker Data (ASX:DDR) operated its DRP with a 1% discount for its latest 11.5 cent fully franked dividend. Strong 1H26 growth and updated FY26 guidance form the backdrop, while thin distribution margins, reliance on IT spending cycles and the conditional nature of guidance and future dividends remain relevant considerations.

Key Insights

Dicker Data (ASX:DDR) reported higher 1H26 revenue, gross profit and net profit, with basic EPS rising to 33.45 cents, and updated its FY26 guidance for gross revenue and profit before tax. Its quarterly dividend increased to 11.5 cents per share, fully franked.

The DRP operated in full for the latest dividend, pricing newly Issued Shares at a 10-business-day average VWAP less a 1% discount. Future dividend amounts and DRP terms remain subject to board decisions and will be set out in each dividend notice.